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Mining
What is cloud mining? How it works, costs and risks
Cloud mining means paying a company to mine crypto for you with its hardware, and receiving a share of the coins it mines. You avoid buying machines and paying for electricity, but your result depends on the coin price, network difficulty and the fees the company charges.
Mining in one paragraph
Proof-of-work coins like Bitcoin and Litecoin are secured by miners: computers that compete to find the next block. The winner receives the block reward plus transaction fees. The more computing power (hashrate) you control compared with the whole network, the more often you win — or, in a mining pool, the bigger your regular share.
Doing this at home means buying ASIC machines, paying for electricity and cooling, and handling noise and repairs. Cloud mining sells you the result without the hardware.
Your robot mines. You get paid.
Get a free robot and a room. Machines from $1 earn every 10 minutes. Cash out in crypto.
- Free · no card
- From $1 with Litecoin
- Cash out in 16 coins
How cloud mining works
- A provider runs mining machines in a data center.
- You buy a contract for an amount of hashrate (for example 100 TH/s of Bitcoin mining) for a period (for example 12 months).
- Every day the provider pays you the coins that your share of hashrate mined, minus maintenance and electricity fees.
- At the end of the contract the payouts stop.
What decides your payout
| Factor | Effect |
|---|---|
| Your hashrate | More hashrate = bigger share |
| Network difficulty | Rises when more miners join → the same hashrate mines fewer coins |
| Block reward | Drops by half at each halving |
| Coin price | Your coins are worth more or less in dollars |
| Daily fees | Electricity and maintenance are taken before you are paid |
Because difficulty tends to rise and rewards halve every four years, a fixed amount of hashrate usually mines fewer coins every month. A contract that looks profitable at today's price can end below break-even if the price falls or the fees are high.
Is cloud mining profitable?
Sometimes, but rarely by as much as the ads suggest. A realistic check:
- Take the contract price.
- Estimate daily coins after fees at today's difficulty, then assume difficulty rises.
- Multiply by a price you consider likely — not the all-time high.
- Compare the total with simply buying the coin with the same money.
If the contract only wins in the most optimistic scenario, it is probably not worth it. The crypto profit calculator helps with the break-even price.
A worked example
Say a contract sells 1 TH/s of Bitcoin mining for 12 months for $60, with a daily fee for electricity and maintenance:
- Look up how many satoshis 1 TH/s mines per day at today's difficulty (mining calculators and pool pages show it). Suppose it is 60 sats.
- Subtract the daily fee, converted to sats. Suppose the fee is 20 sats a day → 40 sats a day left.
- Assume difficulty rises over the year, so the average falls to about 30 sats a day.
- Over 365 days that is about 11,000 sats = 0.00011 BTC.
- At $84,000 per BTC that is roughly $9 — far below the $60 you paid.
The example is made up to show the method, but it shows why fixed-fee contracts are hard to profit from: fees stay the same while the coins mined per terahash keep falling. Use the satoshi converter to turn sats into dollars at today's price.
Cloud mining vs. home mining vs. just buying the coin
| Buy the coin | Home mining | Cloud mining | |
|---|---|---|---|
| Upfront cost | the coins you buy | ASIC machines, power setup | contract price |
| Running costs | none | electricity, cooling, repairs | daily fees taken from payouts |
| Effort | minutes | high (noise, heat, maintenance) | low |
| Resale value | you still own the coins | you can sell the machines | none — the contract ends |
| Main risk | price falls | price falls, difficulty rises, hardware ages | all of those plus the provider itself |
For many people, simply buying a small amount of the coin beats a cloud contract. Cloud mining makes most sense when the provider is transparent, the fee per terahash is low and you understand that output shrinks over time.
Cloud mining red flags
- Fixed daily returns ("earn 3% per day guaranteed") — real mining output cannot be guaranteed.
- No hashrate or pool proof — a real provider can show which pool it mines in.
- Returns mainly from recruiting — if you earn more from inviting people than from mining, the model depends on new money.
- Withdrawals that never reach the minimum or suddenly add new fees.
- Anonymous company, no terms and no public payout history.
Cloud mining vs. a mining game
A mining game such as AiBio.Store borrows the look and feel of mining but works differently, and says so openly:
| Cloud mining contract | AiBio.Store mining game | |
|---|---|---|
| What you buy | Hashrate in a real data center | Virtual machines for your Room |
| Where rewards come from | Coins mined by real hardware, minus fees | A reward pool shared every 10 minutes between active Rooms by power |
| Daily limit | Depends on difficulty and fees | Capped at a set percentage of your machines' value per day |
| Entry | Often $50–$1,000+ | Free robot and Room; machines from $1 in Litecoin |
| Try first | Rarely | Free 2-minute demo with demo money |
| Guarantee | None | None — it is a game, not an investment |
Read how AiBio.Store robot mining works for the full formula, including power hours and how visitors keep your Room running.
Frequently asked questions
Is cloud mining legit?
Real cloud mining exists, run by companies with data centers and pool accounts you can check. Many sites that call themselves cloud mining are not: they promise fixed returns and pay old users with new users' money. Check the red flags above.
Can I cloud mine Litecoin?
Yes. Litecoin uses the Scrypt algorithm and is often mined together with Dogecoin in "merged mining", so some Scrypt contracts pay both.
Do I need a wallet for cloud mining?
Yes, to receive payouts. You need an address for the coin you are paid in, for example a Litecoin or Bitcoin address.
What happens to cloud mining after a halving?
The block reward halves, so the same hashrate mines about half as many new coins. Fees usually stay the same, which is why many contracts become unprofitable after a halving.